Walmart shares 9% tank as inflation squeezes profit margins

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Walmart’s quarterly earnings sorely missed Wall Street’s forecast despite higher sales as higher costs from inflation, supply chain issues and worker wages ate away at margins.

The Arkansas-based retail giant said Tuesday it generated $141.57 billion in revenue, beating analysts’ estimates of $138.94 billion.

Nevertheless, the company’s net profit fell to $2.05 billion, or 74 cents per share. That’s down from $2.73 billion, or 97 cents per share, a year ago. Adjusted earnings per share were $1.30, below the expected $1.48.

Shares of Walmart recently lost more than 9% in early trading on Tuesday.

“The biggest reason for Walmart’s lack of earnings per share is inflation,” Sankar Sharma, market strategist and founder of RiskRewardReturn.com, told The Post.

“Higher product costs, supply chain issues, and higher labor costs have all eaten into the company’s profits.”

The country’s largest retailer has been beset by record levels of inflation as well as problems in the global supply chain.
Bloomberg via Getty Images

Walmart announced earlier this week that it was rolling out a streamlined program to place recent college graduates into store manager roles that pay us more than $200,000 a year.

Dubbed the “College2Career Program,” the pilot initiative is an accelerated training program for recent college graduates and individuals within 12 months of their graduation date, the company said.

Walmart said participants will receive a mix of classroom instruction, one-on-one mentoring and hands-on experience in store management – ​​with exceptional performers being offered the management role of “emerging coach” and a starting salary. $65,000 or more per year.

Federal data showed inflation continues to rise to levels not seen in four decades.
Federal data showed inflation continues to rise to levels not seen in four decades.
Reuters

Last week, the federal government released data showing that inflation rose more than expected by 8.3% in April.

The data indicates that inflation has fallen slightly after hitting 8.5% in March – but not as much as economists had expected, underlining the delicate task ahead of the Fed as it aims to rein in price increases without triggering a recession.

On a monthly basis, the consumer price index, a key indicator of inflation that tracks what consumers pay for goods and services, rose 0.3% from March to April.

That was down from a whopping 1.2% increase from February to March.

Prior to the release, economists polled by Dow Jones predicted the CPI would jump 8.1% in April.

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